Restructuring safety net for SMEs rises to €200m

Restructuring safety net for SMEs rises to €200m

The European Commission had agreed to increase Ireland’s Rescue and Restructuring scheme budget to €200m from €20m.

The move follows consultation between the Department of Business and the European Commission about the need to safeguard the future of Irish SMEs most exposed to Brexit.

The scheme, first approved in 2017, aims to avoid situations where viable small businesses, with the potential to restore their competitiveness, experience difficulties because of an inability to access finance.

“By increasing the provision from €20m to €200m, the Government will be able to put in place a fund, should it be required, to offer both rescue aid and temporary restructuring aid to SMEs in financial difficulty or experiencing acute liquidity needs,” said Business Minister Heather Humphreys.

The minister added that the Government hopes to never have to use the scheme, “however, having the option there is prudent as part of our overall contingency plan for Brexit”.